Staff ReporterIn a significant move to consolidate state-owned assets, Zesa Holdings, along with three of its subsidiaries, have been placed under the ownership of the Mutapa Investment Fund, Zimbabwe’s national sovereign wealth fund. This restructuring leaves the Zimbabwe Electricity Distribution and Transmission Company (ZEDTC), responsible for the national grid and sales utility, as the only entity under direct State control.
The realignment was officiated through Statutory Instrument 51, gazetted yesterday, by President Emmerson Mnangagwa. The presidential decree added the State’s shareholdings in seven companies to the burgeoning portfolio of the Mutapa Investment Fund. Notably, this includes investments in Zesa Holdings and its manufacturing arm, Zesa Enterprises.
The consolidation extends beyond the energy sector, encapsulating five companies previously under the Reserve Bank of Zimbabwe’s domain. These include Aurex, a leading jewellery manufacturer; the Export Credit Guarantee Corporation of Zimbabwe; Fidelity Gold Refinery; and both HomeLink Private Limited and HomeLink Finance.
This strategic maneuver follows the September transition of two other Zesa subsidiaries to the Mutapa Investment Fund. The Zimbabwe Power Company, which manages the Kariba South and Hwange Thermal Power stations, and PowerTel, overseeing the fibre optic network connected to the national grid, were the initial entities moved.
The evolution of the Mutapa Investment Fund from the 2014 inception of the Sovereign Wealth Fund represents a significant overhaul aimed at optimizing government asset management. This transition seeks to assure that these investments remain profitable and efficiently managed.
Sovereign wealth funds, akin to Mutapa, serve as instruments for nations to diversify income sources, safeguarding against economic volatility and ensuring long-term national prosperity. They are instrumental in managing revenue spikes, such as those from sudden natural resource discoveries, ensuring sustained national income.
Post the latest asset realignments, the Mutapa Investment Fund now boasts ownership of key national enterprises, including the National Railways of Zimbabwe, Air Zimbabwe, Zesa, POSB, and NetOne. This expansive portfolio also spans significant mining and agricultural interests, marked by the inclusion of Hwange Colliery Company and Kuvimba Mining House shares, along with a stake in Cottco.
This strategic consolidation under the Mutapa Investment Fund is poised to enhance the operational efficiency and profitability of these entities, reflecting a proactive approach to state asset management for the welfare of Zimbabwe’s populace.
